monster alert!! ACHIW now .05 is being bought for .175
note the bold
Mar 27, 2002, (A. M. Best via COMTEX) -- Kingsway Financial Services
Inc. (TSE, NYSE:KFS) said it has approval from the Illinois director of
insurance to acquire American Country Holdings Inc. (NASDAQ:ACHI) and its
subsidiary, American County Insurance Co.
Under the tender offer announced last month, Kingsway is offering US$2.10 a
share for common stock, US$12 a share for preferred stock--plus an amount to
reflect the value of accrued dividends at expiration of the offer--and 17.5
cents for each class A common stock purchase warrant (BestWire, Feb. 27, 2002).
>The offer requires the tender of common and preferred stock representing at
least the majority of the total voting stock of American Country; that Kingsway
be satisfied that the restrictions of Delaware corporate law wouldn't apply to
Kingsway, and the necessary regulatory approvals.
Earlier this month, American Country's board recommended that shareholders
tender their shares.
In December, A.M. Best Co. downgraded the financial strength rating of American
County Insurance Co. to C++ (Marginal) from A- (Excellent) after the company's
significant reserve strengthening through the third quarter of 2001 and, as a
consequence, the recent deterioration in capitalization (BestWire, Dec. 21,
2001). These factors stem from adverse loss-reserve development from the
company's discontinued lines of business, which include artisan contractors
business and out-of-state hospitality business. To a lesser extent,
transportation results in certain states outside Illinois have been
disappointing.
Unless it is extended, the tender offer expires at midnight on April 1, Kingsway
said.
Attempts to contact the companies for additional comment weren't immediately
successful.
Kingsway has been steadily expanding its U.S. operations. Last summer, it formed
an alliance with Reliant American Group Inc., based in Fort Worth, Texas,
through which Kingsway will market Reliant property/casualty insurance products,
including commercial automobile, garage liability and general liability products
(BestWire, June 6, 2001).
In September, Kingsway expanded into the U.S. nonstandard auto market in five
states--Virginia, Indiana, Arkansas, Ohio and Kentucky--through an agreement
with Vision Insurance Group (BestWire, Sept. 6, 2001).
Kingsway General Insurance Co., an insurance subsidiary of Kingsway Financial,
is rated A (Excellent) by A.M. Best Co.
On the afternoon of March 27, Kingsway's stock was trading at $10.81 a share,
unchanged from the previous close. American Country's stock was trading at $2.10
a share, up 0.96%.
(By Meg Green, senior associate editor, BestWeek: meg.green@ambest.com) |
